Illinois Tool Works Inc (ITW)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,898,000 | 16,107,000 | 15,932,000 | 14,455,000 | 12,574,000 |
| Total current assets | US$ in thousands | 5,856,000 | 6,235,000 | 6,270,000 | 6,374,000 | 6,523,000 |
| Total current liabilities | US$ in thousands | 4,308,000 | 4,675,000 | 4,460,000 | 3,470,000 | 2,589,000 |
| Working capital turnover | 10.27 | 10.32 | 8.80 | 4.98 | 3.20 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,898,000K ÷ ($5,856,000K – $4,308,000K)
= 10.27
The working capital turnover for Illinois Tool Works Inc has shown a consistent and significant improvement over the years, increasing from 3.20 in December 31, 2020, to 10.27 in December 31, 2024. This indicates that the company is effectively utilizing its working capital to generate sales revenue. The escalating trend suggests that Illinois Tool Works Inc has been able to efficiently manage its current assets and liabilities to support its expanding operations and enhance its overall financial performance. A higher working capital turnover ratio signifies a more efficient use of resources and better liquidity management within the company, reflecting positively on its operational efficiency and financial health.
Peer comparison
Dec 31, 2024